Food for Peace
Encyclopedia
Public Law 480 also known as Food for Peace (and commonly abbreviated PL 480) is a funding avenue by which U.S. food can be used for overseas aid.
It has four parts, titles 1, 2, 3 and 5. Title 1 is managed by the USDA (United States Department of Agriculture), while titles 2, 3 and 5 are managed by the U.S. Agency for International Development (USAID).
The full name for Public Law 480 is the Agricultural Trade Development Assistance Act, signed into law on July 10, 1954, by President Dwight D. Eisenhower
. In signing the legislation, Eisenhower stated that the legislation's purpose was to "lay the basis for a permanent expansion of our exports of agricultural products with lasting benefits to ourselves and peoples of other lands."
In 1961, President John F. Kennedy
renamed it as "Food for Peace," stating, "Food is strength, and food is peace, and food is freedom, and food is a helping to people around the world whose good will and friendship we want."
This was reauthorised through the Federal Agriculture Improvement and Reform Act of 1996
(FAIR), commonly known as 1996 Farm Bill.
PL 480 can be divided into 4 Titles: Each is administered by different US agencies.
Surplus bulk commodities purchased from the US are monetized in the recipient's country market. Income generated is to support stated objectives in the predetermined agreement between the US government and the recipient government.
Concessional terms are very favourable: it can be long-term credit up to thirty years, with no minimum repayment for ten years, grace period for payment of principle up to five years at low interest such as 2 - 4%.
This program is flexible and facilitates collaboration with international bodies such as the World Bank
in support of development programs.
Priority is given to
Recipients’ countries must also demonstrate potential to become commercial markets for US agricultural products.
Recipients can be any of the following, operating in conjunction with cooperative sponsors (CS):
For non-emergency aid Title 2 can be often seen to be in support of:
Title 2 has a subsection that gives funding for strengthening of the management ability of the CS especially in the area of management improvement, such as administration and implementation improvement as well as monitoring and reviews.
Section 202 (e) - logistic, information system, research
International Strengthening Assist. (ISA) - Better accountability
It can be used by monetisation of donated commodities in the domestic market, but some may be kept as reserve. To support the program, the US government will pay for all charges involved. Programmes may include:
This program was established aimed mainly at the NIS of the former Soviet Union, but also covers Asia, Africa, and Central and South America.
. Under provisions of the Food Security Act of 1985, certain agricultural cargoes and programs were exempted from cargo preference, and the U.S. flag carriage requirement was increased by 25% for others, meaning that 75% of such cargoes should be carried in U.S. bottoms.
Maritime interests, including USA Maritime
strongly support cargo preference, recently releasing a study about the economic benefit of shipping food aid on U.S. vessels.
It has four parts, titles 1, 2, 3 and 5. Title 1 is managed by the USDA (United States Department of Agriculture), while titles 2, 3 and 5 are managed by the U.S. Agency for International Development (USAID).
The full name for Public Law 480 is the Agricultural Trade Development Assistance Act, signed into law on July 10, 1954, by President Dwight D. Eisenhower
Dwight D. Eisenhower
Dwight David "Ike" Eisenhower was the 34th President of the United States, from 1953 until 1961. He was a five-star general in the United States Army...
. In signing the legislation, Eisenhower stated that the legislation's purpose was to "lay the basis for a permanent expansion of our exports of agricultural products with lasting benefits to ourselves and peoples of other lands."
In 1961, President John F. Kennedy
John F. Kennedy
John Fitzgerald "Jack" Kennedy , often referred to by his initials JFK, was the 35th President of the United States, serving from 1961 until his assassination in 1963....
renamed it as "Food for Peace," stating, "Food is strength, and food is peace, and food is freedom, and food is a helping to people around the world whose good will and friendship we want."
This was reauthorised through the Federal Agriculture Improvement and Reform Act of 1996
Federal Agriculture Improvement and Reform Act of 1996
The Federal Agriculture Improvement and Reform Act of 1996 , known informally as the Freedom to Farm Act, the FAIR Act, or the 1996 U.S...
(FAIR), commonly known as 1996 Farm Bill.
PL 480 / Food for Peace
The purpose of PL 480 is to:- Combat world hunger and malnutritionMalnutritionMalnutrition is the condition that results from taking an unbalanced diet in which certain nutrients are lacking, in excess , or in the wrong proportions....
- Promote sustainable development including agriculture development
- Expand international trade
- Develop and expand export market for US agricultural commodities and products
- Foster private enterprise and democratic participation
- Profitably supply surplus US commodities to foreign countries
PL 480 can be divided into 4 Titles: Each is administered by different US agencies.
- Title 1, Economic Assistance and Food Security (Managed by USDA)
- Title 2, Emergency and Private Assistance Programs (Managed by USAID)
- Title 3, Food for Development (Managed by USAID)
- Title 5, Farmer-to-Farmer Program (Managed by USAID)
Title 1
The main focus of title 1 is Economic Assistance and Food Security. It allows concessional sales of agricultural products to friendly developing nations, either by government to government (main means) or government to private entities (rare).Surplus bulk commodities purchased from the US are monetized in the recipient's country market. Income generated is to support stated objectives in the predetermined agreement between the US government and the recipient government.
Concessional terms are very favourable: it can be long-term credit up to thirty years, with no minimum repayment for ten years, grace period for payment of principle up to five years at low interest such as 2 - 4%.
This program is flexible and facilitates collaboration with international bodies such as the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
in support of development programs.
Priority is given to
- Countries with little foreign exchange
- Countries with food security problems
- Programs concentrating on alleviating poverty
- Countries with agricultural development needs
Recipients’ countries must also demonstrate potential to become commercial markets for US agricultural products.
Title 2
The main use of this program is for Emergency and Private Assistance Programs. Title 2 allows donation of US agricultural products to meet humanitarian food needs. Emergency and non emergency (development) food aid activities support broader USAID objectives and can be used for both direct feeding and monetisation programs.Recipients can be any of the following, operating in conjunction with cooperative sponsors (CS):
- PVOPVOPVO may refer to:* DaimlerChrysler's Performance Vehicle Operations, also known as Street and Racing Technology* Private voluntary organization...
- Private voluntary organization - NGO - Non-governmental organization
- IO - International organization such as WFP - World Food ProgrammeWorld Food ProgrammeThe World Food Programme is the food aid branch of the United Nations, and the world's largest humanitarian organization addressing hunger worldwide. WFP provides food, on average, to 90 million people per year, 58 million of whom are children...
For non-emergency aid Title 2 can be often seen to be in support of:
- Development Food Aid (Non emergency)
- Health and Nutrition program
- Agriculture (Food for Work, Food for agriculture…).
- Educational program
- Humanitarian Relief - Vulnerable Population
- Micro-enterprise development
Title 2 has a subsection that gives funding for strengthening of the management ability of the CS especially in the area of management improvement, such as administration and implementation improvement as well as monitoring and reviews.
Section 202 (e) - logistic, information system, research
International Strengthening Assist. (ISA) - Better accountability
Title 3
Also known as Food for Development. It is a government-to-government grant to the least developed countries, and aims at addressing food and nutrition problems, countries most in need of food to enhance long term food security. Programs with direct links to increased food production and consumption have priority.It can be used by monetisation of donated commodities in the domestic market, but some may be kept as reserve. To support the program, the US government will pay for all charges involved. Programmes may include:
- Privatisation of food market
- Attract poor children to school
- Address chronic food shortages
- Infrastructure development, such as roads
Title 5
Known as Farmer to Farmer Program, established in 1986, re-authorised by the 1996 Farm Bill Act. It is not a food aid programme, but a short term technical assistance by linking American volunteer farmers with farmers in developing countries, whereby the US farmer will spend time in the developing country working with the developing country farmers to improve food production, marketing and distribution.This program was established aimed mainly at the NIS of the former Soviet Union, but also covers Asia, Africa, and Central and South America.
Cargo Preference
As a civilian agency government-impelled cargo, U.S. humanitarian assistance shipped overseas as food aid is subject to the requirements of Cargo PreferenceCargo Preference Act
The Cargo Preference Act or Cargo Preference refers generally to legal requirements for the carriage of government-impelled cargoes on the vessels flagged within the registry of that government for the purpose of promoting a national merchant marine...
. Under provisions of the Food Security Act of 1985, certain agricultural cargoes and programs were exempted from cargo preference, and the U.S. flag carriage requirement was increased by 25% for others, meaning that 75% of such cargoes should be carried in U.S. bottoms.
Maritime interests, including USA Maritime
USA Maritime
USA Maritime is a coalition of carriers and maritime unions that are part of the U.S. Merchant Marine. The purpose of the coalition is to educate policy makers, the media, and the public about issues impacting the U.S. flag merchant marine and maritime industry...
strongly support cargo preference, recently releasing a study about the economic benefit of shipping food aid on U.S. vessels.